Apart from recurring China FUD announcements, we have another potential government threat, The Securities and Exchange Commission (SEC). who are already after Coinbase, Uniswap Labs and Tether. That's where Gary Gensler comes into frame, joined back in April of this year. He understands blockchain tech deep that he used to lecture about at MIT. He was in investment banking prior to that.
SEC played a shameful part in the 2008 real estate collapse as they were giving AAA ratings to failing Collateral debt obligation (CDO). Now, they are after crypto with the mask of “investor protection”. Last week Gary gave an exclusive interview to the Washington Post titled “the path forward”. We should also mention that the Washington post audience primarily belongs to the banking sector.
Hey Gary, If I have to U.S. Dollar in my savings account, at my bank, and earn .05% interest, is the U.S. Dollar a Security?????— JamesRuleXRP💫HODL💫DYOR💫I Told You So🚀👊😎 (@RuleXRP) September 21, 2021
The interview had mixed emotions as there are some positives about the reliability of the technology, Transaction throughput capabilities, lower infrastructure costs, etc. His concerns are in Yield chasing, Stable coins and centralised exchanges.
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">At $2 trillion — 5,000 or 6,000 projects — we need to be thinking about investor and consumer protection, tax compliance, anti-money laundering, and financial stability. <a href="https://t.co/NysH6QiKFr">pic.twitter.com/NysH6QiKFr</a></p>— Gary Gensler (@GaryGensler) <a href="https://twitter.com/GaryGensler/status/1440413035550494720?ref_src=twsrc%5Etfw">September 21, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
He addressed the need for “more transparency” which we couldn’t wrap our heads around, as Blockchain is the most transparent financial tool without middlemen, more data is available for anyone to verify. It is not his ignorance, he has been learning and understanding the tech in greater detail. He has been active in and around crypto. Why is he still insisting? we can only assume, to protect interests.
Can someone tell Gary Gensler that like 99.99% of cryptoassets aren't actually trying to be "currencies"?— sassal.eth 🦇🔊 (@sassal0x) September 22, 2021
He seems to be very confused about that.
Another takeaway from his interview was policymaking, he accepted that existing policy can’t be used for measuring digital asset classes like crypto. The existing one was written back in the 1930s.
In the Senate hearing regarding banking on sept 14th, he explained crypto and its implication to senators along with Risky trades, use of AI tech in trading platforms, Disclosures from companies and Climate change risk (BTC FUD)
Over the past years, we’ve seen new brokerage & wealth management apps that give us investing advice, along w/ robo-advising.— Gary Gensler (@GaryGensler) September 10, 2021
New tech can bring greater access, but it also raises the question: are investors appropriately protected?
Submit comments at https://t.co/lsKMfK6Iad pic.twitter.com/GqYZxB57Rm
He had previously hinted at the need for futures contracts to be in place before approving ETFs, which can be considered a bullish sign and higher demand from investors. Futures will guarantee long term liquidity.
The spat with Coinbase led them to stop Coinbase lend program as SEC warned of suing them for violation and they do not explain what is the exact violation. There are not enough guidelines about crypto. Another important caution that he hinted at was ICOs, SEC is coming after those who raised money through ICOs and transparency in the documentation.
Soon after his interview, he tweeted the following, An advice to investing 🤣
Whether we’re starting off our freshman year of college or getting ready to graduate soon, I’d bet that most of us are thinking about money in one way or another.— Gary Gensler (@GaryGensler) September 22, 2021
My two pieces of advice are: Start saving early, and save regularly! pic.twitter.com/sJN3tKs91a
We found one better
Maybe for stock tips go to someone the SEC can’t harass and tax 2x a year.— Cassandra (@michaeljburry) September 25, 2021
TikTok Users Watch Nancy Pelosi For Stock Trade Tips From Congress Disclosures : NPR https://t.co/j9H6MEW2lZ